Lawmakers in the Hawaiʻi Senate Housing Committee on Tuesday rejected a core element of a major housing proposal backed by Governor David Ige and House and Senate leadership that aims to provide affordable housing near the rail line.

The problem is the so-called affordable housing wouldn’t actually be affordable, according to Senator Stanley Chang, who chairs the committee.

Under Senate Bill 3104, the state would issue 99-year leases for projects that make 50 percent of units available to households making 140 percent of the area median income (AMI) and invest $275 million in housing infrastructure. A family of four making 140 percent of AMI could afford a home that costs $867,900. The other half of the units would be market rate.

“I will never accept a bill that has 140 percent of AMI when we’re talking about free state land and free taxpayer-funded infrastructure,” Chang said. “That is a pure giveaway to developers, and it’s completely irresponsible.”

Chang’s committee advanced an amended version of the bill that would require 100 percent of units to be available to those making 80 percent of AMI and below.

Gavin Thornton, executive director of the Hawaiʻi Appleseed Center for Law & Economic Justice, said Chang’s amendment is a major improvement, but it could benefit from further discussion to ensure the income restriction isn’t too rigid.

“It might also be helpful to have more flexibility that would allow you to have a few units that target higher-income households in exchange for securing deeper affordability that provides housing for lower-income households,” he said.